Fitch Ratings has upgraded the long- and short-term Issuer Default Ratings (IDRs) for Associated Banc-Corp to ‘BBB-/F3’ from ‘BB+/B’. In addition, the long- and short-term IDRs for Associated Bank, its principal banking subsidiary, were affirmed at ‘BBB-/F3’.
Fitch has also upgraded the Individual Rating for both entities to ‘C’ given the company’s modestly improving fundamentals.
Fitch Ratings said its ratings upgrade reflects the more typical alignment of bank and holding company IDRs following improvements to the financial profile of the holding company.
“The affirmation of the bank-level ratings as well as the upgrade of the Individual rating for all of (Associated Banc-Corp’s) entities reflects the improving fundamentals of the business given the combined entity’s higher liquidity, stronger capital position, and improving asset quality measures,” Fitch wrote in a ratings upgrade release. “Over the course of the last year, ASBC has brought in a new management team, aggressively written down problem assets, raised almost $500 million in fresh equity, committed to maintaining high levels of overall liquidity, and engaged in over $430 million of bulk loan sales to help restructure its balance sheet. Fitch believes these actions provide the company positive traction to return to more normalized levels of earnings and profitability.”
